Payment Provider
Payment Service Provider
Definition
A firm authorised to provide payment services including payment execution, money remittance, payment initiation, and account information services. Payment providers are regulated under PSD2 in the EU (and the UK's onshored version), with requirements covering authorisation, safeguarding of customer funds, strong customer authentication, and operational resilience.
Regulatory Context
The payment services landscape has evolved significantly with the advent of open banking under PSD2, enabling third-party providers to access payment account data and initiate payments. PSD3/PSR proposals will further update the framework.